The Resilient Organisation: Essential Steps to Disaster-Proof Your Business
Organisational resilience. It sounds like quite a serious statement, does it not? That is because it is. There are different layers to unpack, which is what we will be looking at.
Organisational resilience can be defined as the ability of an organisation to withstand and adapt to a crisis. It is like the other side of the coin of crisis management. A crisis can come in many forms, and it is best to be prepared. How does an organisation respond to a crisis and also minimise business disruption? This challenge requires a multi-faceted approach.
Risk Management
First on the list is Risk Management, commonly known as the Second Line of Defense. It can be defined as the process of identifying, addressing, monitoring and reducing the impact of risks on organisational objectives. It is a very important piece of the organisational resilience puzzle that can go a long way in readying an organisation to fend off a looming crisis. An organisation should establish a culture that is risk aware and have a formalised Risk Strategy in place that filters down from strategic to operational level.
Business Continuity and Disaster Recovery Planning
Secondly, organisations should have clearly defined Business Continuity and Disaster Recovery Plans. These two go hand-in-hand, a symbiotic relationship, if you will.
Business continuity planning focuses on ensuring that the organisation can continue to operate during and after a disruption. How does an organisation keep operating when it finds itself in hot water? One of the most critical parts of Business Continuity Management (as part of a Business Continuity Plan) is the Business Impact Analysis (BIA). The BIA helps identify and prioritise critical business functions and the impact of a disruption on these functions. Strategies should be developed to maintain critical operations during disruptions, which can include alternative work arrangements and incident response plans. The BCP should be regularly tested through drills and simulations and updated based on the lessons learned.
The Disaster Recovery Plan (DRP) focus on restoring IT systems and data. For a Disaster Recovery Plan (DRP) to be effective, there are several components that need to be in place. The organisation should perform a Risk Assessment to identify potential threats and vulnerabilities, such as such natural disasters, cyber-attacks, and hardware failures. It is imperative that Recovery Time Objectives (RTO) and Recovery Point Objectives (RPO) are established for each system or business function. This will ensure a measured approach to recovery. Recovery strategies should be in place, which include, for example, backups and alternate sites. Regular backups of critical data is crucial and should not be neglected. A well-planned and consistent backup process can give an organisation a head-start in data restoration after a disaster. Who wouldn’t want that? Additionally, redundant systems and failover mechanisms to maintain operations in the event of a failure should also be implemented. The DRP should include step-by-step procedures to be followed for different kinds of disasters, contact details of relevant parties to be contacted in the event of a disaster, and clearly outline the roles and responsibilities of the relevant stakeholders, as nobody likes to be caught unaware. Employees should also be trained regarding their duties in the DRP, and the plan should be tested on a periodic basis. As they say, better safe than sorry.
Cultivating a Resilient Culture
Fostering a culture where all staff feel that they are part of organisational resilience is key. Leadership should be flexible and responsive to changes and empower employees to contribute to organisational resilience.
In conclusion, organisational resilience refers to an organisation's ability to anticipate, prepare for, respond to, and adapt to incremental changes and sudden disruptions in order to survive and prosper. It encompasses business continuity, disaster recovery, risk management, and adaptability to ensure long-term sustainability and success. The implementation of these strategies can ensure that your organisation not only survives but thrives in the face of adversity. With organisational resilience, as with all things, it is best not to put all your eggs in one basket.